Ultratech Announces Third Quarter 2011 Results

For the third quarter of fiscal 2011, Ultratech reported net sales of
$54.9 million as compared to $37.9 million during the third quarter of
fiscal 2010. Ultratech's net income for the third quarter of 2011 was
$10.5 million, or $0.39 per share (diluted), as compared to net income
of $4.9 million, or $0.20 per share (diluted) for the same quarter last
year.

For the first nine months of 2011, Ultratech reported net sales of
$156.3 million compared to net sales of $97.0 million in the first nine
months of 2010. Ultratech reported net income of $28.1 million or $1.05
per share (diluted) during the first nine months of 2011, compared to
net income of $10.5 million or $0.42 per share (diluted) for the first
nine months of 2010.

Arthur W. Zafiropoulo, Chairman and Chief Executive Officer, stated,
"During the quarter, advanced packaging product demand continued to
dominate the company's business. In addition, we gained traction in the
deployment of our high-brightness LED (HB-LED) tools as evidenced by the
increased growth in revenue for the quarter.

"Customers are reassessing their capacity expansion plans which are
translating into a more conservative outlook," continued Zafiropoulo.
"In this current environment, it is imperative that we further our
ongoing efforts to deliver superior customer support and provide our
customers with reliable, technologically advanced and cost-effective
solutions.

"While we realize that there is uncertainty in the economic environment,
we believe our technology based business model will enable us to address
this uncertainty and create long-term growth and value for our
stockholders," Zafiropoulo concluded.

At October 1, 2011, Ultratech had $221 million in cash, cash equivalents
and short-term investments. Working capital was $268 million and
stockholders' equity was $10.78 per share based on 25,700,131 total
shares outstanding as of October 1, 2011.

Conference Call Information

The conference call will be broadcast live over the Internet beginning
at 11:00 a.m. Eastern Time/8:00 a.m. Pacific Time on Thursday, October
20, 2011. To listen to the call over the internet or to obtain dial-in
information for the call, please go to the investor relations section of
the Ultratech website at http://ir.ultratech.com.

If you are unable to attend the live conference call, a replay will be
available on Ultratech's website. If you do not have Internet access, a
replay of the call will be available three hours after the conclusion of
the call and run until 9:00 p.m. Pacific Time, October 27, 2011. You may
access the telephone replay by dialing 800-406-7325 and entering access
code: 4476384.

Profile

Ultratech, Inc. (Nasdaq: UTEK) designs, manufactures and markets
photolithography and laser processing equipment. Founded in 1979, the
company's market-leading advanced lithography products deliver high
throughput and production yields at a low, overall cost of ownership for
bump packaging of integrated circuits and high-brightness LEDs
(HB-LEDs). A pioneer of laser processing, Ultratech developed laser
spike anneal technology, which increases device yield, improves
transistor performance and enables the progression of Moore's Law for
45-nm and below production of state-of-the-art consumer electronics.
Visit Ultratech online at: www.ultratech.com.

Safe Harbor

Certain of the statements contained herein, which are not historical
facts and which can generally be identified by words such as
"anticipates," "expects," "thinks," "intends," "will," "could,"
"believes," "estimates," "continue," and similar expressions, are
forward-looking statements under Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, that involve risks and uncertainties, such as risks
related to timing, delays, deferrals and cancellations of orders by
customers, including as a result of semiconductor manufacturing capacity
as well as our customers' financial condition and demand for
semiconductors; demand for consumer devices; industry growth within the
company's served markets; continued delivery of financial performance
and value; cyclicality in the semiconductor and nanotechnology
industries; general economic and financial market conditions including
impact on capital spending, as well as difficulty in predicting changes
in such conditions; rapid technological change and the importance of
timely product introductions; customer concentration; our dependence on
new product introductions and market acceptance of new products and
enhanced versions of our existing products; lengthy sales cycles,
including the timing of system installations and acceptances; lengthy
and costly development cycles for laser-processing and lithography
technologies and applications; integration, development and associated
expenses of the laser processing operation; pricing pressures and
product discounts; high degree of industry competition; intellectual
property matters; changes in pricing by us, our competitors or
suppliers; international sales and operations; timing of new product
announcements and releases by us or our competitors; ability to volume
produce systems and meet customer requirements; sole or limited sources
of supply; effect of capital market fluctuations on our investment
portfolio; ability and resulting costs to attract or retain sufficient
personnel to achieve our targets for a particular period; dilutive
effect of employee stock option grants on net income per share, which is
largely dependent upon our achieving and maintaining profitability and
the market price of our stock; mix of products sold; outcome of
litigation; manufacturing variances and production levels; timing and
degree of success of technologies licensed to outside parties; product
concentration and lack of product revenue diversification; inventory
obsolescence; asset impairment; changes to financial accounting
standards; effects of certain anti-takeover provisions; future
acquisitions; volatility of stock price; foreign government regulations
and restrictions; business interruptions due to natural disasters or
utility failures; environmental regulations; and any adverse effects of
terrorist attacks in the United States or elsewhere, or government
responses thereto, or military actions in Iraq, Afghanistan and
elsewhere, on the economy, in general, or on our business in particular.
Such risks and uncertainties are described in Ultratech's SEC reports
including its Annual Report on Form 10-K filed for the year ended
December 31, 2010 and our quarterly report on Form 10-Q for the quarter
ended July 2, 2011. Due to these and additional factors, the statements,
historical results and percentage relationships set forth herein are not
necessarily indicative of the results of operations for any future
period. These forward-looking statements are based on management's
current beliefs and expectations, some or all of which may prove to be
inaccurate, and which may change. We undertake no obligation to revise
or update any forward-looking statements to affect any event or
circumstance that may arise after the date of this release.

ULTRATECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

Nine Months Ended

Oct. 1,

Oct. 2,

Oct. 1,

Oct. 2,

(In thousands, except per share amounts)

2011

2010

2011

2010

Total net sales*

$

54,944

$

37,937

$

156,272

$

96,991

Cost of sales:

Cost of products sold

21,935

16,274

64,013

39,008

Cost of services

3,614

3,141

11,671

8,754

Total cost of sales

25,549

19,415

75,684

47,762

Gross profit

29,395

18,522

80,588

49,229

Operating expenses:

Research, development and engineering

6,349

4,980

17,832

14,610

Selling, general, and administrative

11,484

8,634

32,301

24,091

Operating income

11,562

4,908

30,455

10,528

Interest expense

(4

)

(6

)

(16

)

(1

)

Interest and other income, net

(74

)

92

40

288

Income before income taxes

11,484

4,994

30,479

10,815

Provision for income taxes

1,020

92

2,420

348

Net income

$

10,464

$

4,902

$

28,059

$

10,467

Earnings per share - basic:

Net income

$

0.40

$

0.20

$

1.09

$

0.43

Number of shares used in per share calculations - basic

25,977

24,370

25,678

24,204

Earnings per share - diluted:

Net income

$

0.39

$

0.20

$

1.05

$

0.42

Number of shares used in per share calculations - diluted

26,647

25,067

26,620

24,692

* Systems sales

$

44,827

$

30,794

$

127,189

$

76,616

Parts sales

4,456

3,020

13,547

8,803

Service sales

5,361

3,998

14,786

11,322

License sales

300

125

750

250

Total sales

$

54,944

$

37,937

$

156,272

$

96,991

ULTRATECH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

Oct. 1,

December 31,

(In thousands)

2011

2010*

ASSETS

(Unaudited)

Current assets:

Cash, cash equivalents and short-term investments

$

220,819

$

184,290

Accounts receivable

34,890

32,825

Inventories

48,615

37,088

Prepaid expenses and other current assets

8,258

7,777

Total current assets

312,582

261,980

Equipment and leasehold improvements, net

14,881

14,835

Other assets

2,995

4,479

Total assets

$

330,458

$

281,294

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Notes payable

$

4,000

$

6,000

Accounts payable

15,650

13,154

Deferred product and service income

10,188

13,641

Other current liabilities

14,483

12,028

Total current liabilities

44,321

44,823

Other liabilities

9,010

5,344

Stockholders' equity

277,127

231,127

Total liabilities and stockholders' equity

$

330,458

$

281,294

* The balance sheet as of December 31, 2010 has been derived from the
audited financial statements as of that date.